I have worked with many investors over the years since I’ve been in real estate. You must be careful when looking at real estate as an investment. If the market is increasing in price and you are buying as an investment, it could cost you if the timing is not right. Years ago, I bought a condo in North Myrtle Beach. I did not think of it as an investment but as a second home that my family could use. We got several years enjoyment with it. When I sold it, It was worth almost 2.5 times more than I purchased it for. I bought some land thinking it is a good investment. We were planning to build our home on it, but later decided to buy another lot to build on. When we sold the lot about 3 years later, we made about 33% more than we paid for it. Timing is everything. Had I waited longer to sell it, we could have lost money on it.
There are many condos along the Grand Strand that generate good income, but you need to make sure you analyze everything in determining whether it will be a good investment such as HOA fees, rental income, condition of the unit, age of the building, is it in a popular area of the beach (location), who will manage the rental for you, and if you decide to do it yourself, who will look after the unit.
Some novice investors think the can buy a unit and it will pay for itself and take care of the payments for financing as well as any other expenses. You must be careful with this thinking. This is usually not the case. Over the years, the appreciation can make a difference, but you need to understand all of these things before you purchase an investment property.
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